Monday, 3 November 2014

Instalment Loans - Potentially the Best Alternative to Payday Loans

An instalment loan is a well-known financial service which has been used for a long time as a long term loan solution for consumers. The basic idea of this loan is the repayment structure which allows the borrower to repay over a certain time period with multiple number of scheduled payments. As a rule of thumb, more than one payment or at least two payments constitute an instalment loan. For long, it has existed as mortgage, lease, etc. The duration of an instalment loan may range from as little as two months up to as long as 30 years for a standard mortgage.

The instalment loan service, when associated with traditional consumer loans, is existent for a shorter term through store purchases differing in terms from one business to another. As a consumer loan in the United Kingdom, it is innovative and convenient for struggling borrowers to repay over multiple payments rather than at once through payday loans. Instalment loans can be considered to be safe and affordable in comparison others such as personal loans, title loans, credit cards, etc. Consumers will benefit from easy repayment of the principal and interest over the course of a prolonged time period as an excellent alternative to payday loans.

Benefits of Instalment Loans over Payday Loans

Credit: Stephen Dobinson /
Paydays Lead

Instalment Loans in UK | Paydays Lead

An instalment loan does not differentiate itself in many ways from a typical payday loan. Disregarding the loan amount, it is mainly different in terms of the repayment options. However, the single repayment factor is enough reason for a consumer to choose an instalment loan over a typical payday loan. Instead repaying the principal and interest in one single payment, a borrower can repay an equal amount over the course of the loan, which is significantly longer than that of a payday loan. Regarding the loan amount, it is also much higher for an instalment loan when compared to a payday loan.

Instalment Loan Offer from Paydays Lead

Paydays Lead offers instalment loans starting at £500 ranging to as much as £1000. An applicant can choose to apply for instalment loans of Paydays Lead from the choice of amounts such as £500, £600, £700, £800, £900 or £1000. This allows an applicant to decide exactly which amount is appropriate for their individual needs. The repayment choices available to borrowers ranges from two months to six months. The borrower can repay in 60 days, 90 days, 120 days, 150 days or 180 days depending on their convenience. The longer repayment period also means that it is a much more financially cheaper option compared to the APR of a payday loan. So if you are in need of urgent cash but you want more time than a few weeks to repay, then an instalment is a more suitable alternative to payday loan for your urgent needs.

How difficult is it to Qualify for an Instalment Loan?

It may sound over simplified, but it is not any more difficult to gain the benefits of instalment loans. The application process including verification, validation, and approval is similar to that of payday loans. The application tool in PaydaysLead.co.uk allows the applicant to choose whether they are applying for a payday loan or an instalment loan. Qualification terms are mostly to meet the legal government regulations and is not a deciding factor for the loan itself.

Applicant must be legal UK resident, currently residing at a valid UK address.

Applicant must be at least 18 years of age and provide proof of age through a valid ID.

Applicant must have a valid source of income through current employment or others.

Applicant must have a valid UK bank account for direct transactions.

Instalment Loans: Alternative to Payday Loans

Payday loans are an excellent source of unsecured consumer loans. They do not require to be secured by a property such as a car, phone, laptop, etc. You are not in risk of losing a personal possession however you risk hurting your financial credibility through irresponsible lending actions. It allows you to get access to instant cash for an unexpected emergency without embarrassing yourself to friends or family. The easy and effective online processing allows you to get access to a loan without any hassle such as hefty paperwork, extensive phone conversations, and lengthy cues at financial establishments for various reasons. So why choose an alternative to payday loan?

An instalment loan has the exact same benefits of payday loans with a few more! A borrower is able to borrow twice as much as an instalment loan and have that amount to be repaid for a much longer period. The two primary features of a loan, the amount and the duration, are a huge advantage to instalment loans. The borrower is more likely to afford smaller and multiple repayments rather than one large repayment amount. These factors equip borrowers with a better plan of managing their personal finances to ensure timely repayments. Instalment loans are a more attractive and viable alternative to payday loans.

Responsible Lending and Borrowing

Although Paydays Lead's short term loans such as payday loans and instalment loans do not require to be secured by a property such as a car, phone, laptop, etc. You are not in risk of losing a personal possession however you are in risk of hurting your credit record through irresponsible lending actions. Borrowers must ensure that repayments are made on time whether it is a payday loan or an instalment loan. This will ensure that you are not liable to paying unnecessary additional fees to further secure your financial future.

PaydaysLead.co.uk is a government approved financial service provider from the Financial Conduct Authority (FCA). Information submitted through the use of the website is ensured for confidentiality by the Data Protection Act. For assistance with money management and debt, you can consult the National Debt Line.